Using Social Media to Drive Loyalty Using Social Media to Drive Loyalty And Transform Your BusinessAnd Transform Your Business

Charles E. MillerDirector, Social Media Strategy

Feeding the BeastFeeding the Beast

U.S. users of consumer-generated content(millions)

2006

2007

2008

2009

2010

2011

NOTE: includes video, audio, photo sharing, Blogs, Wikis, Podcasts and online bulletin boards

128.0

147.5

169.7

195.7

225.8

253.6

Blogs vs. Mainstream MediaBlogs vs. Mainstream Media

Blogs are getting taken more seriously as sources of information.

More people will get their news and entertainment from blogs than from traditional media in the next 5 years.

Blogs are just as valid media sources as traditional media.

I get more of my news and information from blogs than other media sources.

Blogs are often better written than traditional media articles.

Newspapers will not be able to survive in the next 10 years.

Source: Technorati State of the Blogosphere / 2008

Word of Mouth RulesWord of Mouth Rules

““I’m throwing I’m throwing DIRECTV out DIRECTV out of my house!” of my house!”

-Guy Kawasaki, 2007-Guy Kawasaki, 2007

Repeated a few weeks ago Repeated a few weeks ago in his SES NY 2009 Keynotein his SES NY 2009 Keynote

Social Media is Serious BusinessSocial Media is Serious Business

Engadget knocked $4 billion off market cap of a Bay area firm in six minutes on bogus product rumor

We want metrics that matter

Scale Scope Sentiment ROI

Correlating Experience to LoyaltyCorrelating Experience to Loyalty

Correlating Experience to LoyaltyCorrelating Experience to Loyalty

Correlating Experience to LoyaltyCorrelating Experience to Loyalty

Tracking Scale, Scope, SentimentTracking Scale, Scope, Sentiment

Think LA LA

Listen Act Learn Adapt [ to immediate needs ] [ to change best practices ]

Listen Again [ for impact ]

Case Study #1Case Study #1Addressing Product RumorsAddressing Product Rumors

An influential blog suggested that our HDPC-20 was “alive” – using a Windows7 driver and test environment pics as evidence.

This Windows driver screenshot and a “smuggled” photo of test equipment at Microsoft Labs quickly fueled speculation of the product release was real and may be announced at CES.

Addressing Product RumorsAddressing Product Rumors

Addressing Product RumorsAddressing Product Rumors

CES 2009 just weeks away, we: • identified the key bloggers,• leveraged shared

relationships• provided project status

How did LA LA work in this case?

• Listened closely which first alerted us as it developed

• Act quickly and directly

• Learned what was most important

• Adapted our PR practices to go direct online vs a press release or taking no action at all

Case Study #2Case Study #2You Do Not Control The MessageYou Do Not Control The Message

Our Loyal Customer

On launch, negative reaction is swift with mixed sentiment posts nearly as high

Commentary shifts to when service anniversary date will be and what gifts those are eligible for

1/2 of all positive sentiment in the day occurs after official statement clarifying eligibility is passed on to top moderators

Customer service agent leaks information about an upcoming loyal customer program

False start dates of 8/6 and 8/15 fuel posts and speculation, going negative when it is not realized

Mixed reaction spike due to delayed delivery of gifts posted to customer accounts, addressed next day

Listen Act Learn Adapt

You Do Not Control the Message You Do Not Control the Message

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Case Study #3Case Study #3Launching Directly in Social MediaLaunching Directly in Social Media

Results:

Traditional press pick-up at 100K download press release, not the first

200K Downloads in its first a week

Nearly ½ MillionDownloads in a month

Largely due to word of mouth online

Launching Directly to Social MediaLaunching Directly to Social Media

Listen Act Learn Adapt

Listen closely.Act on what you hear.

Learn what is important.Adapt Business Practices.

=Loyal Customers

+Relevant Products & Services

And can be done anywhere.

(Ran and monitored iPhone launch via Blackberry while finishing my neighbor’s Victorian)

Thank you